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March 27, 2008 |
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PANGLOBAL: SC Approves Sept. 25 Deadline to Execute Reform Plan The Securities Commission has approved Panglobal Berhad's application to extend another six months or until September 25, 2008, to implement its Proposed Restructuring Plan, which includes: The capital reduction exercise involving: -- the proposed cancellation of RM0.60 from every existing ordinary share of MYR1 each in PanGlobal resulting in an existing issued and paid-up share capital of MYR140,130,340 comprising 140,130,340 ordinary shares of MYR1 each being reduced to MYR56,052,136 comprising 140,130,340 ordinary shares of MYR0.40 each; and -- the proposed consolidation of the 140,130,340 ordinary shares of MYR0.40 each in PanGlobal into 112,104,272 ordinary shares of MYR0.50 each in PanGlobal. As announced on September 8, 2005, the rights issue exercise is expected to raise gross proceeds of MYR210.196 million. In order for the rights issue exercise to raise this same amount of proceeds taking into account the revised capital reduction level, the entitlement basis for the rights issue exercise is required to be revised. Thus, the Proposed Rights Issue will now entail the renounceable rights issue of 420,391,020 PanGlobal shares at an issue price of MYR0.50 per PanGLobal share on the basis of 15 Rights Shares for every four PanGlobal Shares held after the Proposed Capital Reduction. Furthermore, the settlement to a Secured Scheme Creditor -- Maybank Berhad -- which holds MYR182,695,117 nominal value of RCSLS via a RCSLS buy-back arrangement, has been revised to take into account monies in an escrow account with an ascribed value of MYR11.816 million, which was inadvertently omitted earlier. The revised settlement to Maybank Berhad in relation to its RCSLS under the Proposed Debt Settlement can be summarized as: Original Revised Variance MYR'000 MYR'000 MYR'000 -------- ------- -------- Outstanding debt as of September 1, 2005 182,695 182,695 - ERV of security held 47,800 59,616 11,816 Nominal value of RCSLS not covered by security 134,895 123,079 (11,816) Buy-back price 101,758 108,848 7,090 No of free Warrants to be issued 16,862 15,385 (1,477) As a result, the total cash settlement to the Scheme Creditors under the Proposed Debt Settlement will be increased by MYR7.090 million to MYR341.142 million and the number of free Warrants to be issued under the Proposed Debt Settlement has been reduced by 1.477 million to 68.340 million. There are no changes to the basis of settlement under the Proposed Debt Settlement or the total settlement to the other Scheme Creditors. Resulting from the revisions, the total indicative proceeds of MYR360.196 million from the Proposed Rights Issue and Proposed PGI Disposal is expected to be utilized as: Proposed utilization Original Revised MYR'000 MYR'000 Buy-back of Loan Stocks and settlement under the Proposed Debt Settlement Scheme 334,052 341,142 Financing of the working capital requirements of the PanGlobal Group and to defray expenses incidental to the Proposed Restructuring Scheme 26,144 19,054 Total 360,196 360,196 The Proposed Restructuring Scheme is expected to enhance the future earnings of the PanGlobal Group. Headquartered in Kuala Lumpur, Malaysia, PanGlobal Berhad -- http://home.panglobal.com.my/ -- is engaged in underwriting all classes of general insurance business, extracting of logs, sawmilling, manufacturing of veneer and extraction of coal. Other activities include property investment and development and leasing of real estate, investment holding, business management, building and fitness club management. PanGlobal is listed under Practice Note 4/2001. The Bursa Malaysia Securities has required the company to regularize its financial condition, curb huge losses and settle debts in order to continue operating. The company has already submitted a Proposed Restructuring Scheme to the Securities Commission on Sept. 9, 2005. On April 6, 2006, the Securities Commission approved PanGlobal Berhad's proposed restructuring scheme for implementation. |
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